Advice on looking for a property to Subdivide

Hi Jacedc

I will let others more capable than me answer some of the more specific parts of your post however i would make sure that you communicate to your mortgage broker that you are looking at building townhouses on the site and ensure they fully understand the mechanics of doing so.

I have seem many a deal come unstuck as the client went direct to the lender and didnt realise the complications of financing such a deal thru certain lenders. This can be either a matter that the dont like multiple properties on the one Title or indeed they dont realise that the security value reduces once the existing house is demolished.

Hope this helps.

Cheers

Yours in Finance

Hi,
It would be useful to give a location/state as planning is state based and then people from that state would be able to give you some advice about zoning.

Regards,

Jacedc,

I would recommend doing the early sums and understanding what you want from the endeavour.

Here's a simple feasibility exercise that works well:

The 3/3 exercise.
1/3 = Land acquisition costs
1/3 = Development costs
1/3 = Margin (before taxes)

This will help you to understand the the budget and land size constraints.

For example if you purchase land for say $600,000, look to spend a further $600,000 on development costs and to end up with "as if complete" values of $1.8m. In this case it might be 3 dwellings with a value of $600,000 each. This in turn means you would be looking for land suitable to build three dwellings at a cost of $600,000.

Once you have established your budget and land constraints you can more easily communicate this to agents and vendors. Then get some good planning advice prior to making your offer. A consultant will be able to tell you what title and planning constraints exist and will also be able to help with land use planning to ensure it all works.

Best of luck with your research.

Hi,

Just to reiterate what the other Vic people have said. It’s important in all developments to surround yourself with a great team (in the initial stages you’d be looking for planners, designers, surveyors and real estate agents). Have a look around and see how much townhouses and vacant lots sell for in your targeted area. All the planners I’ve spoken to on this site are fantastic. Zoning information can be found for free via the following link
http://services.land.vic.gov.au/landchannel/jsp/map/PlanningMapsIntro.jsp
If you click on property information you can get a pdf with a summarised description of your zone and any updates to the planning structure.

If you see this link there is a complete description of the fees you should expect in the process https://www.propertyinvesting.com/forums/property-investing/value-adding/4343000?#comment-252239

Also at the following link I’ve recently uploaded a subdivision flowchart for free download. Hopefully will explain things a bit clearer.
http://www.mediafire.com/?jkxmrbthy2s326c

Cheers,
Ashley Stacey

I'm looking to sub-divide in Vermont South and need help finding an architect/ draftsman who deals with Whitehorse council and therefore understand their requirement. I'm trying to subdivide a block of land which is 715 sq m in size; however, due to the odd position of the existing dwelling – we won't have more then 220 sq m left for the new dwelling (so idea is to build 10 sq single story or 14-16 sq double story).
Also, we may have to adjust driveway for the existing dwelling so that we can subdivide avoiding any common driveway.

Any good architect/ draftsman contacts please?

With regard to the last two posts particularly:

715m2 is an adequate size to subdivide, not withstanding any preclusion on title or by planning overlay.

The size of the land (220m2) is more of a practical concern than a statutory concern. That is to say, a density of 2:715m2 is an average of 362.5m2 per dwelling which again is adequate.

120m2 is enough for a well designed 3br dwelling. And there are 9.29m2 to a square.

A separate driveway is usually worth the effort, or you could consider a carriageway easement to avoid common property.

And to jasedc5r's question; council may permit the construction of a double storey dwelling  to the rear of a property (we have had a number approved) but it does require more detailed and sensitive design and planning. The usual issues with this sort of proposal are overlooking and overshadowing. If these two issues (and the other controls) are handled sensitively there is every chance of a permit being granted.

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Full and free right for every person who is at any time entitled to an estate or interest in possession in the land herein indicated as the dominant tenement or any part thereof with which the right shall be capable of enjoyment, and every person authorised by that person, to go, pass and repass at all times and for all purposes with or without animals or vehicles or both to and from the said dominant tenement or any such part thereof.